Weekly - It's the first time in around 12 months that the weekly price action has managed to close above 124.00. Price action is above the MA's; which are crossed to the upside.
Daily - We have had a formation at 124.00 - indicating that the price did not like being below 124.00. The bottom of the also touches a 61% .
I have 3 Fib's on this pair, one monthly, one long term daily/weekly and the one you can see on this 4hrly chart. The two shorter term fibs both give a D1 extension around the 127.00 area - the reasons behind my first target on this pair. The longer term monthly fib has a target a lot higher, but it just gives me an added conlfuence to the pair.
I am looking for a long entry on this pair, using the indicated CTL for an extra reason for going long.
I have indicated what I think could possibly happen (see the arrows on the chart) with a pullback and another bounce of the 124.00 level before continuation to the upside. If this does happen it would be a bonus giving us a better risk:reward ratio.
I will update when the market opens.
I have actually taken a long position at 125.197
Stops @ 123.900 (10pips below support)
Target @ 127.000
Risk to reward ratio of 1:1.4 with around 120pips risk to 180pips reward.
We'll see how this one plays out.